Vanguard Initiative

INNOVATION SESSIONS

Industrial Digitization

21 November 2017

Building Industrial Innovation Opportunities

through Smart Specialization

What is the Vanguard Initiative?

Industrial Innovation initiative

Network (ASBL) of 33 EU regions striving for stronger competitiveness, innovation and internationalisation of

European industry

INDUSTRIAL MODERNISATION

REGIONS

Norte

North Rhine - Westphalia

Orebro (Central SW)

Lombardy

Lower Austria

Malopolska

Navarra

Haut de France

Norte

North Rhine - Westphalia

Orebro (Central SW)

Pays de la Loire

Randstad Region

Saxony

Scotland

Skåne

South - Denmark

South – Netherlands

East & Ouest Slovenia

Tampere Region

Trento Aut. Province

Upper Austria

Varmland

Wales

Wallonia

Vanguard MembersAsturias

Auvergne - Rhône - Alpes

Baden - Württemberg

Basque Country

Cantabria

Catalonia

Dalarna (Central SW)

East - Netherlands

Emilia - Romagna

Flanders

Galicia

Lombardy

Lower Austria

Malopolska

Navarra

Haut de France

What is the Vanguard Initiative?

• Industrial Innovation Initiative

focusing on market uptake of

innovative technologies (KETs)

• Interregional cooperation between

regional authorities, clusters, business,

knowledge institutes (innovation

ecosystems)

• Industry based S3, Smart Specialization as

coordination principle

• Active participation in the network structure

and at pilot level

• Exploring and facilitating public-private

investment

Vanguard Initiative

• Bottom-up, Industry

involvement, Cluster

facilitation

• Competitive EU value chains

• Pilot for S3 Platform on

Industry Modernization

• Multilevel governance, multi

level funding synergies

• Strong political commitment at

regional level and ambition to co-

shape EU policy agenda (Letter to

the Council, Milan Declaration)

• Structured dialogue with

European Institutions

How Vanguard

Works

Vanguard Initiative methodology

CONNECT

DEMONSTRATE

COMMERCIALISE or INDUSTRIAL UPTAKE

UP

SC

ALE

LEARN

• Developing a scoping paper• Mapping questionnaire• Identify lead regions and actors

• Matching events for complementary partners

• Developing industry led demonstration cases

• Networked demonstrators• Pilot lines and first of a kind factories • TRL 6 – 7 – 8

• Launch of new ventures and start - ups• New EU value chains• TRL 9

Bu

sin

ess &

In

ve

stm

en

t P

lan

s

Industry Owned

IndustryInspired

IndustryDriven

Industry Driven

Implementing S3: Vanguard methodology tested in 5

Thematic Pilots

AdvancedManufacturingfor Energy

applications

3D

Printing

Bioeconomy

Efficient&

Sustainable

Manufacturing

Nano Enabled

Products

Challenge driven or Technology Driven pilots

2nd generation

1st generation

5 Pilot Projects & demo cases: test bed for systemic change

Pilot Project Lead Regions Democases

1

Bio - economy Interregional cooperation on innovative use of non - food biomass

Randstad Region, Lombardy

• Lignocellulose refinery

• Bio-Aromatics

• Turning (waste)gas into value

• Biogas Beyond Energy

• Aviation Fuel

• Food & Feed from Agrofood Waste

• Food & Feed ingredients from Algae

2

Efficient and Sustainable Manufacturing

Lombardy, Catalonia

• De- and remanufacturing (Circular Economy)

• Adaptive and intelligent assembly and manufacturing systems

• Advanced Sustainable Surface and Coating Manufacturing Technologies on

polymers

• Digital and Virtual Factory integrating planning and simulation into

operative environments

• Energy and Environmentally-efficient Manufacturing Processes

5 Pilot Projects & demo cases: test bed for systemic change

Pilot Project Lead Regions Democases

3

High performance production through 3D-printing

Flanders NorteSouth-Netherlands

• Multi-materials components by hybrid 3D-printing manufacturing.

• 3D-Printed automotive components for large, medium and small

complex parts

• Machinery and tooling

• Additive subtractive platform

• HealthCare

• Mass Customised Products

4

Advanced Manufacturing for energy applications in harsh environment

Basque CountryScotland

• Corrosion

• Manufacturing of Large Scale Components

• Sensing & Instrumentation

• Operation & Maintenance

5New Nano - enabled products

SkåneTampere

• Nano wires for ICT and energy applications

• Printed Nanoelectronics

• Nano-emabled Microsystems for Bioanalysis

Pilot Projects and Demo cases: test bed for systemic change

• Cooperation between clusters,

companies and knowledge institutes

in specific technology field or

application domain

• Accelerate market development

for high-value added products or

uptake of innovative processes

• Promote Global competitiveness,

looking at economic and social impact and

susutainability

• Interregional joint-demonstration

projects

• European Network of Demonstrators

• Building of new industrial value chains

through a pipeline of investments

projects

Pilot Projects and Demo cases: test bed for systemic change

Criteria for demo cases

• Demonstration projects, no research (>TRL 5 - post prototyping)

• Industrial Commitment (to lead/participate/co-invest)

• European dimension - added value compared to what exists at regional level

• Added-value of joint demonstration

ESM Pilot: Real, Digital and Virtual World Factories Demo Case

Industrial IoT & AnalyticsCPS-enabled Pilot Plants

What-if Scenarios & SimulationIoT solutions

Valorization of Future Internet PPP results

Open Source

Community of applications

developers to broaden

protocols and interfaces

Thematic area, Mission & Technologies

Next generation ICTs, such as: - Internet of Things,

- Cloud/Big Data

- Artificial Intelligence / Deep Learning

Exploit the potential of data generated by CPS-oriented Industry 4.0 production systems

Enabling Digital Factory applications in domains such as: production planning and

optimization, diagnosis and maintenance, energy and waste management as well as by

supporting Virtual Factory modelling and simulation environments where what-if

scenarios could be designed, developed and experimented

Enriching Smart Factory CPSs with Digital Factory applications

& Virtual Factory simulations

Thematic area, Mission & Technologies

Industrial Internet of Things

Industrial Data Analytics

Virtual-Augmented Reality and Advanced HMI

Cyber-security in Cloud Manufacturing

Distributed Factory Automation architectures

Digital Platforms Semantic Interoperability

Collaborative Manufacturing & Logistics

Model-based Production Simulation

Digital Double and Digital Twin

Enabling methods and technologies

Enriching Smart Factory CPSs with Digital Factory applications & Virtual Factory simulations

Digital and Virtual Factory Pilot Plants

Digitizing EU Industry (DEI) Communication aims to ensure that every industry in

Europe can fully benefit from digital innovations, a game changer for manufacturing

sector.

D&V Factory Pilot Plants are Regional Innovation Hubs, based on CPS-enabled Real

World Factories and providing hands-on interactive experience on Digital and Virtual

technologies.

Digital and Virtual Factory Pilot Plants

Manufacturing SMEs in the Region are driven through a continuous digital

transformation process made of awareness-training-experimenting-benefitting from

D&V Factory scenarios.

ICT solution providers in the Region are stimulated by challenges and awards to

constantly improve the quality and the TRL of their D&V Factory solutions.

Regional Specialization in D&V Factory

LombardyOpen Source Digital Platform, FIWARE for Industry. Industrial IoT and data analytics for zero defect manufacturing and production optimization in machine tools and white goods.

NorteProcess/Factory design and simulation for production ramp-up in the furniture sector. Digital Twin and plug & produce simulation.

CataloniaDigital Platform for data acquisition and pre-processing, data analysis and big data in the cloud. Focus on plastic injection in the automotive sector.

TampereDigital Twins, Mobile HMI, Intelligent Work Orders and Data Analytics for the machine tools and the white goods sectors.

SaxonyPlatform for virtual factory representation, design and simulation. Intelligent Maintenance.

East Netherlands

South Netherlands

Navarra

Pays de la Loire

Galicia

Digital and Virtual Factory integrating

planning and simulation into operative environments

Regions: Lombardy, South Netherlands, Tampere, Catalonia, Norte, Saxony,

Technical Coordinators: Lombardy, South Netherlands,Tampere

Sergio Gusmeroli, Politecnico di Milano - sergio.gusmeroli@polimi.it

Coen de Graaf, Province of Nord Brabant - cdgraaf@brabant.nl

Minna Lanz, TUT - minna.lanz@tut.fi

• FOFLAB Teaching Factory: a CPS-driven manufacturing

experimental facility

• Digital Factory: hands-on experience to Digital

application cases (BEinCPPS project)

• Virtual Factory: Centre of Competence in Distributed

Factory Automation (IEC61499)

• Industrial Pilot on Data Analytics for a Machine Tool

Manufacturer SME

• Industrial Pilot on IoT for a White Goods Manufacturer

Large Enterprise (Zero Defect)

Lombardy Region Pilot Plant & Digital Platform

Potential End-users Technology providers Research and Innovation actors Clusters

WhirlpoolPorta Solutions

EngineeringTXT e-solutions

Politecnico di Milano;Università di Brescia

AFIL

Contacts: Sergio.gusmeroli@polimi.it, marta.pinzone@polimi.it

Shopfloor

DIGITAL VIRTUAL

SMART

FITMAN DyVisual

Application MashupFITMAN Collab.

Asset Management

IoT Device IoT Device IoT Device IoT Device IoT Device

Big Data

Publish/SubscribeContext Broker

IoT DeviceManagement

IoT Broker IoT Discovery

FITMAN Dynamic CEP

Information Systems

Enterprise ApplicationsIoT & M2M Applications

Smart System

SecureGateway IoT Protoco Adapter(s)

IoT Data Handling

www.fiwareforindustry.eu

www.beincpps.eu

Norte Region Pilot Plant & D/V Platform

Contacts: luis.carneiro@inesctec.pt; pedro.rocha@produtech.org

Learning Factory that will support Research, Validation,

Demonstration and training activities in areas such as:

• Process and factory simulation.

• Flexible Internal logistics, including AGVs, conveyer and

warehouse systems.

• Intelligent automation and robotics. Innovative

applications and artificial vison.

• Planning, scheduling and control, including advanced

solutions considering uncertainty and small lot sizes.

• Smart objects, Interoperability and industry 4.0.

Laboratory of Processes and Technologies for Advanced Production Systems

Tampere Region Pilot Plant & Virtual Platform

Contacts: minna.lanz@tut.fi ; reijo.tuokko@tut.fi

• FMS Training center (physical) and Virtual FMS:

Visualization for Virtual FMS -control system (MMS5)

• Functional Digital Twins for discrete manufacturing

systems

• Decentralized Manufacturing – Intelligent Work Order

• Mobile User interfaces: dashboards, role-based user

interfaces

Specs:Diameter:12.56

Tolerance:.04

Instruc ons:-…..

Machineparameters

Schedule

IntelligentWorkOrderMobileUIconceptsandprotos

Catalonia Region Pilot Plant & Digital Platform

Contacts: silvia.castellvi@i2cat.net

• Experimental infrastructure for digitalizing industry:

Infrastructure services: Data storage, HPC, Big Data,… available

for manufacturing experimental facility (Industrial4.0 Platform)

• Digital Factory: Data acquisition and pre-processing (CPS), data

analysis and big data in the cloud

• Industrial Pilot: plastic injection monitoring in the cloud, there

are several industries interested on the solution and the pilot is

supported by the Automotive Cluster of Catalonia (CIAC); that

facilitate the awareness and promotion at sectorial level.

• Industrial experimental facilities: plastic injection machine,

CPS and cloud for teaching and experimenting.

http://www.plataformai40.com/

Saxony Region Pilot Plant & Virtual Platform

Contacts: Michael.Kuhl@iwu.fraunhofer.de; Katja.Haferburg@iwu.fraunhofer.de

• Linked Factory

Semantic-web-based data- and service platform for seamless

integration of sensors, devices, control systems, IT-Systems,

(horizontal /vertical) to generate an complete virtual factory

representation

• Hybrid Testing Environment

Connecting real machine and process data with virtual simulation

models for evaluating innovative production methods and strategies .

• 2D/3D Planning Tools

Virtual design and verification of efficient, ergonomic workplaces,

processes & factories

• Intelligent Maintenance

Combination of real and virtual sensors as well as pan-European

cloud-based linkage of data leads to higher quality in the prediction

of maintenance issues

Overall Impact sectors

Machine Tools White goods Furniture Automotive

Aeronautics Medical Textile Footwear

Overall Stakeholders

Manufacturing Enterprises

Technology providers

Clusters &

Industrial Associations

Research & Innovation Actors

10 REGIONS

Investment sizeDe

mo

nst

rati

on

/ u

psc

alin

g th

rou

gh:

Connecting and upgrading existing facilities

Creating / building new inno facilities

Category 1 Demo-Cases« Connecting what

already exists »Ca. 50% of VI demo-

cases

0,5-10€ Mio +/- 10-50€ Mio +/- 50-200€ Mio (poss. even higher …)

Category 3 Demo-Cases

« Connecting & upgrading what already exists »

30% to 40% of VI demo-cases

Cat 2 Demo-Cases10% to 20% of VI demo-

cases

« Building & connecting new demo facilities »

Different Investment Needs emerged

27

Basic Demonstration Infrastructures – Initial Costs related to the setting up of the infrastructures and platforms

Projects-related activities (within the platform; TRL 5-7/8) –Operating costs

Replication

Industrial Upscale

Industrial Upscale

(TRL 8/9)2

Industrial Upscale

(TRL 8/9) 3

Industrial Upscale

(TRL 8/9) 4

Etc.

5

Etc

6.

Etc.

7

Regional, National and EU Subsidies

Public subsidies and private co-investments

Private investments, public (EFSI /EIB-like) loans

Revenues generated from Replication/Industrial upscale and production

ROI based on

industrial upscale

General Financial Structure – three layers

Laye

r 1

Laye

r 2

Laye

r 3

Notes:

The 3 layers are inter-dependent

Public Support participation of the private sector

but ‘non-profitable top’ need to becovered through subsidies,

structural

Project basede.g. 50%

subsidies, use of demo

infrastructures

(Loans / Guarantees)

Val

ue

pro

po

siti

on

Val

ue

Cre

atio

n

Cap

turi

ng

Val

ue

www.s3vanguardinitiative.eu

Vanguard point of view on the actions proposed in the EC Communication

COM (2017) 376 final Vanguard welcome:

- the new link established between cohesion policy and industrial policy with Smart Specialisation

- Focus on interregional and cross sectorial value chains rather than sector specialisation

- the recognition of clusters as key players in innovation and industrial ecosystems

- Accent put on the need to improve the multi level governance of Smart Specialisation

- Importance of public-private partnerships in the transformation of industrial sectors

- Recognition that interregional cooperation and S3 should be a pillar of industrial policy

- the pilot actions supported by the ERDF (even if the resources are rather limited to have a real impact)

- Discussions on Omnibus regulation

www.s3vanguardinitiative.eu

Vanguard point of view on the actions proposed in the EC Communication

COM (2017) 376 final

Vanguard believe that:

-Art. 70, guidelines on synergies and seal of excellence are not a solution since funding

available is limited

-European Investment Hub, Investment Envoys and ESIF can be useful for industrial

upscale (TRL 9) but does not solve the problems of the demonstration phase (TRL 6-8)

for the valorisation of research results.

-A stronger connection with Innovation Policy (under H2020/FP9) should be established

@VI_Brussels #Vanguardinitiative

www.s3vanguardinitiative.eu

Vanguard point of view on the actions proposed in the EC Communication

COM (2017) 376 final Challenges identified in the Communication:

1) Increasing cooperation across regions 2) Leveraging research and regional innovation ecosystem

Vanguard recommendation:

Give appropriate financial means to Thematic S3 Platforms and interregional cooperation programs

Working on the creation of favourable framework conditions for innovation in regional ecosystems and companies, going back to Innovation Union and its Self Assessment Tool (Annex 1)

@VI_Brussels #Vanguardinitiative

www.s3vanguardinitiative.eu

Recommendations for future programming period

A centrally managed EU Innovation and Demonstration Fund for Innovation investments (Industrial Pilot Plants TRL 6-8)

A sort of “top up mechanism” for industrial demonstrators

Use FP9 and its industrial pillar to support a new Strategy for Key Enabling Technologies

Multi level funding synergies to support strategic investments

State aid harmonisation

Key Vanguard policy recommendations

•Mixed funding (Grants & Loans)

•Synergies/co-investment

•Matching projects & funding

•Investor readiness

• Inter-cluster networks

• Connecting regional ecosystems

• Cross-sector & value chain approaches

• Industry-led pilots, networks of demonstrators

• Interregional innovative collaboration projects

• Multi-level governance (regional, National, European)

Regional dimension

of EU policies

Flexible, user-and needs-

driven approach

Funding tools, funding

mixes, innovative

use of funds

Cluster policy

33

@VI_Brussels #Vanguardinitiative

www.s3vanguardinitiative.eu

Recommendation for EU industrial innovation policy

Regional dimension

Technologies

SustainabilityPeople

Regional Innovation ecosystems as pillars of Industrial development

Focus on Industrial uptake of Enabling

Technologies , invest in pilot plants &

demonstrators

Reinforce Human Capital, Skills and Cluster policy for

Industrial development

Use the “challenge approach” to combine industrial development

and sustainability

@VI_Brussels #Vanguardinitiative

www.s3vanguardinitiative.eu

“Pilot plants should act as the framework where new value chains are

created (cf. the emerging Vanguard model).”

“industry commons are about demand led initiatives and facilities which can

be combined with a stronger investment-oriented agenda.”

Quotes: Prof. Slavo Radosevic UCL, Special Advisor to DG Regio Commissioner

Smart Regions Conference in Brussels held on June 1-2 2016

Priority should be put on supporting pilot plants and industrial demonstrators

A reinforced coordination between different EU Policies is needed

Cohesion Policy

Industrial Policy

Innovation Policy

DG REGIO

DG GROWDG RTD

DG CONNECT

JRC

@VI_Brussels #Vanguardinitiative

www.s3vanguardinitiative.eu

Valentina PinnaResponsible for Research & Innovation

Lombardy Region

Chair of the Vanguard Initiative